We all know that in the digital world blockchain technology making waves and it is because of its association with cryptocurrencies and in them, bitcoin is main. Now here is the question that everyone thinking about what is blockchain technology and why should we care about it? If you are looking for the answer this question ten you should be a beginner in this world and this guide is specially made for beginners and will break it down for you in very simple and easy words.
What is Blockchain?
Have you ever heard about distributed ledger technology? if not then now you can because it's blockchain technology. This technology stores information in multiple computers and this is a digital record-keeping system also it is secure and transparent. This is different than the traditional system because in the traditional system, central authority controls the data and here I am talking about the bank and government. Blockchain is all about decentralization. This means data is verified by a network of users who are the miners and no single entity can control it.
How Does Blockchain Work?
If you understand it then just imagine a chain of blocks. You know? every chain has a list of transactions and once a block is full then it gets linked to its previous block and this is how it's forming a chain. block cannot be altered after it's added so that is why blocks are secure.
A simplified breakdown of the process is below:
Transaction Initiation: sending cryptocurrency to another user? then it is transaction initiation.
Verification: There are networks of users that are known as nodes and here is the main thing because nodes check the transaction validation.
Block Creation: As I said Once the transaction is verified, it is added to a new block and other transactions are also there.Then the new block added to the blockchain and also This block is linked to the previous block which make it more secure.
After all this process the transaction has been complete and you know? This transaction cannot be altered so this particular thing provides trust and transparency.
Key Features of Blockchain
Decentralization: As I said this is not a traditional system and here nodes are the operators. Because of this decentralized environment, it is free from scams and manipulation.
Transparency: Accountability and transparency are here because every single transaction is visible to all network users.
Security: in the block, the data is recorded and once it is done then it is nearly impossible to change it. so this is resistant for hacking and most secure.
Immutability: When transactions or single transaction added in a one block then it is like stone line and becomes a permanent part of that block and the fun fact is changing or deleting data is require to change every block that follows it and connected with it which is not impossible.
Conclusion
Blockchain is not just a technology it is a revolution because of its key features transparency, decentralization, and security. it is beyond the cryptocurrency and it is shaping the industry it sounds a bit complex but you have to understand the basic concept for the details. So if you are curious about how this technology can impact your business and take an interest in cryptocurrencies then it is worth exploring the blockchain first. Thanks for reading this great information and it is specially shared for beginners. please share your viewpoints in the comments upvote this and also follow me on hive.
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